European Review December 2024: Record Demand Caps a Strong Year for STRs

Key Takeaways

• European short-term rental demand reached 440 million nights in 2024, up 17.3% year-over-year (YOY).
• Occupancy rose 1.4% YOY as demand outpaced supply, but ADR growth slowed to 4.4% due to increased competition.
• Bookings for February through July 2025 are up 18% YOY.

December put a merry end to a record breaking year of short term rental supply and demand growth in Europe. Demand nights reached 28.9 million, the highest ever recorded for December and a 13.6% increase from last year. 

Although December marked 2024’s slowest month for listing growth, the European continent still added 92,000 new listings, bringing the total number of available listings to 3.3 million.

With demand growing faster than supply, occupancy rose by 1.8% year-over-year (YOY), averaging 54.6% across Europe. However, this occupancy growth did not translate into higher nightly rates. Average Daily Rates (ADR) for December fell by 3.5% YOY, which led to a 1.8% YOY decline in Revenue per Available Rental (RevPAR).

At a Glance: December 2024 STR Performance in Europe

• Available listings totaled 3.3 million, up 11.2% year-over-year (YOY)
• Demand nights reached 28.9 million, an increase of 13.6% YOY
• Average daily rates (ADR) averaged €166, down 3.5% YOY
• Average occupancy rates were 54.6%, up 1.8% YOY and up 8.1% compared to 2019
• Revenue per Available Rental Night (RevPAR) decreased 1.8% YOY to €90
• Booked nights increased 19.9% YOY

2024 European STR Market Year in Review

2024 was another record-breaking year for short term rentals(STR) in Europe. Double digit demand growth outpaced enduring supply growth, allowing European hosts to reap the benefits from higher occupancy and persistent pricing power. Here’s a recap of the year’s stats: 

Supply

After a strong year of supply growth in 2023, Europe continued its growth trajectory in 2024. Year-over-year (YOY) listing growth averaged 15.7% for the first half of the year before slowing to 12.9% as new listing growth decelerated. Overall, 1.3 million new listings were added in 2024 and monthly available listings in Europe averaged 3.5 million, a 14.2% YOY increase. 

Demand

Demand showed no signs of slowing down in 2024. Total nights stayed in European STRs reached a record high of 440 million, a 17.3% YOY increase.  This growth was fueled by a resilient labor market, rising wages, and easing inflation, which collectively boosted private consumption and travel demand. Private consumption played an outsized role in GDP growth for the year, and the European Central Bank projects it will remain a key driver into 2025.

Event travel also exploded in 2024, as major music and sports events brought travelers to cities across Europe. Highlights included Eurovision, the Paris Olympics, Taylor Swift’s Eras Tour, and EURO 2024. These high-profile events drove STR revenues to new heights, with both new and established hosts reaping the benefits of surging demand. 

Occupancy 

Occupancy rebounded in 2024 as demand growth outpaced supply expansion. Average occupancy rates across Europe rose 1.4% YOY to 56.2%. Europe saw particularly strong occupancy growth in the fall with vibrant shoulder season demand pushing occupancy rates up by more than 2% YOY between October and November. 

Unlike the U.S., where occupancy rates have fallen below 2019 levels, Europe’s rates have continued to show resilience. Average occupancy rates in 2024 were 1.6% higher than in 2019. 

ADR

After double digit growth in 2023, ADR growth slowed to 4.4% in 2024. Easing inflation and rapid supply growth over the last two years started to chip away at the immense pricing power held by hosts. Across Europe, nightly rates averaged €172 in 2024.

RevPAR

With ADR growth slowing, year-over-year RevPAR growth fell from 8.4% in 2023 to 5.9% in 2024. On average, revenue earned per available night was €97 in 2024. European short-term rental hosts earned a total of €76 billion in revenue in 2024.

Double Digit Demand Growth in the Top 20 European Markets

All 20 of the largest short-term rental (STR) markets in Europe experienced double digit demand growth in 2024. Many of the same northern and eastern European destinations that took the lead in demand growth last year continued to lead this year. Demand nights grew over 20% year-over-year (YOY). 

• Hungary (+21.1%)
• Germany (+21.3%)
• Finland (+21.5%)
• Denmark (+21.8%)
• Sweden (+23.7%)
• Czech Republic (+27.2%)
• Poland (+29.3%)
• Norway (+31.6%)

In other countries, low travel interest, STR regulations, and high nightly rates contributed to lower demand growth. Ireland ranked last for demand growth in 2024, with travel demand remaining 15% below 2019 levels. 

New STR regulations implemented in 2023 capped supply and demand growth in Portugal, putting it in second to last place in the demand growth rankings among the top 20 countries. 

Average nightly rates exceeding €220 made the UK and Switzerland two of the most expensive European countries for STR stays in 2024. Demand growth between 2023 and 2024 was below 13% in both countries. 

• Ireland (+11.2%)
• Portugal (+12.1%) 
• United Kingdom (+12.5%)
• Switzerland (+12.9%) 

Robust demand growth in 2024 was a key driver of rising occupancy across Europe’s largest STR markets. Sixteen of the top 20 European countries experienced occupancy increases this year—a stark contrast to 2023, when occupancy declined in 17 of these markets.

In most countries, supply growth kept pace with demand growth, resulting in relatively stable occupancy levels. However, in markets where demand growth significantly outpaced supply expansion, occupancy saw the strongest gains. Norway, Greece, Spain, and Croatia stood out, with occupancy growth exceeding 2% YOY in 2024.

• Norway (+2%)
• Greece (+2.7%)
• Spain (+5.2%)
• Croatia (+6.5%)

Top 50 Cities See Full Supply and Demand Recovery in 2024

2024 was also a comeback year for European cities. After several years of slow recovery, supply and demand in the 50 largest urban short-term rental (STR) markets finally returned to 2019 levels. In December, supply and demand levels among the top 50 cities were 2% above pre-pandemic levels.

Supply and demand growth varied widely among Europe’s top 50 cities in 2024. In markets where supply grew faster than demand, occupancy rates declined. With more listings available, guests had more options, which led to fewer bookings per host on average.

Of the top 50 cities, half (25) experienced year-over-year (YOY) occupancy declines. Cities like Napoli, Italy; Belgrade, Serbia, and Paris which saw tremendous listing growth in 2024, recorded the steepest drops in occupancy as supply outpaced demand.

Markets where demand growth matched or exceeded supply saw occupancy gains in 2024. Top performers included Calp, Spain; Budva, Montenegro; and Marbella, Spain. Each of these locations recorded occupancy growth of over 8% YOY.

Strong occupancy performance translated into greater pricing power and more revenue per night (RevPAR) for hosts. Many markets with the highest occupancy growth in 2024 were also leaders in RevPAR growth, highlighting the close relationship between demand-driven occupancy and revenue potential.

Europe’s Short-Term Rental Trends in Review

Have you been following this year’s short-term rental (STR) trends? In case you missed them, we’re highlighting some of the top European supply and demand trends of 2024 below.

Rising Popularity of Undiscovered Destinations

Travelers continue to seek destinations off the beaten path. More affordable destinations and less traveled European hotspots such as Albania, Kosovo, and Moldova experienced explosive growth, with STR supply and demand growth both exceeding 40% year-over-year (YOY). 

Shorter Booking Lead Times Signal a New Normal

Guests are waiting longer to book their stays, marking a shift in traveler behavior. In 2024, the median booking lead time dropped to 23 days—three days shorter than the previous year. More guests are booking stays at the last minute, continuing a two-year trend of significantly shorter lead times compared to 2019. 

January was the most popular month for impromptu trips last year, with a median booking lead time of just 12 days. In contrast, August bookings were made the furthest in advance, with a median lead time of 33 days.

Upscale and Larger Properties Drive Occupancy Growth

Larger and higher price tier properties are leading occupancy growth across Europe. Recent years have revealed a shift in traveler preferences toward more spacious and upscale accommodations, and this trend was reflected in short-term rental demand in 2024.

Upscale and luxury properties with 3-5 bedrooms recorded occupancy growth exceeding 3% last year. In contrast, budget and economy properties with 1-2 bedrooms experienced modest or negative occupancy growth.

Unique Stays Lead Supply Growth Across Europe

Unique listings have emerged as a standout category for supply growth in the European STR market. While houses and apartments still dominate the landscape, unique properties have steadily gained traction since 2019.

In 2024, unique listings grew 12% year-over-year (YOY), comprising  3% of all monthly available listings. Over the past five years, property types like treehouses, campers/RVs, dome houses, tents, and tiny houses have seen the largest increases in available listings

Cleaning Fees Boost Host Profits

Cleaning fees continue to make up a large portion of STR revenue for hosts. In 2024, revenue from cleaning fees totaled €4.1 billion in Europe, accounting for nearly 6% of total STR revenue. 

Cleaning fees vary in prevalence across Europe. Among the top 20 largest European short-term rental markets, they’re most common in the Netherlands and Germany. 

Strong Demand Pacing Sets the Stage for 2025

As we look ahead to the next six months, bookings suggest a strong season ahead for European STRs. Demand on the books for February through July is currently up 18% year-over-year (YOY). 

Bookings for February are showing steady growth, up 12% YOY. However, with Easter shifting back to April this year, March is seeing weaker booking growth at +5% YOY. In contrast, April is experiencing a surge, with current bookings up 44% YOY.